Individuals who have only been invested in equities this year are no doubt suffering. Below we highlight the year-to-date performance of various asset classes in 2008. The results clearly show the importance of asset allocation. While the S&P 500 is down 15.82%, Treasuries are down just 44 bps, and commodities like gold and oil are up significantly. With the amount of ETFs out there that track all asset classes, there really is no excuse to not be diversified.
At Bespoke, we offer two ways for investors to implement an all-ETF asset allocation strategy. At Bespoke Premium, we have a Model ETF Portfolio that applies this approach. For each asset, we provide the recommended weighting (stocks-50%, bonds-25%, etc.) and invest in various ETFs within the asset class that we currently believe are the most attractive. The Bespoke Premium Model ETF Portfolio has held up exceptionally well for a long-only account during this market downturn, declining just 6.59% since inception last June while the S&P 500 has declined 18.35%. For investors looking to take a more hands-off approach, Bespoke also offers a professional money management strategy using all ETFs that applies the same asset-allocation principles mentioned above. For more information, please visit our money management page or call 914-315-1248.